XML 32 R19.htm IDEA: XBRL DOCUMENT v3.19.2
Equity
 9 Months Ended
Jun. 29, 2019
Equity [Abstract]  
Equity
Equity
The Company paid the following dividends in fiscal 2019 and 2018:
Per Share
 
Total Paid
 
Payment Timing
 
Related to Fiscal Period
$0.88
$1.6 billion
Fourth quarter of Fiscal 2019
First Half of 2019
$0.88
$1.3 billion
Second quarter of Fiscal 2019
Second Half of 2018
$0.84
$1.2 billion
Fourth Quarter of Fiscal 2018
First Half of 2018
$0.84
$1.3 billion
Second Quarter of Fiscal 2018
Second Half of 2017

As a result of the acquisition of 21CF, TWDC became the parent entity of both 21CF and TWDC Enterprises 18 Corp. (formerly known as The Walt Disney Company and referred to herein as Legacy Disney). TWDC issued 307 million shares of common stock to acquire 21CF (see Note 4), and all the outstanding shares of Legacy Disney (other than shares of Legacy Disney held in treasury that were not held on behalf of a third party) were converted on a one-for-one basis into new publicly traded shares of TWDC.
On March 20, 2019, Legacy Disney terminated its share repurchase program, and 1.4 billion treasury shares were canceled, which resulted in a decrease to common stock and retained earnings of $17.6 billion and $49.1 billion, respectively. The cost of treasury shares canceled was allocated to common stock based on the ratio of treasury shares to total shares outstanding, with the excess allocated to retained earnings. At June 29, 2019, TWDC held 19 million treasury shares.
TWDC’s authorized share capital consists of 4.6 billion common shares at $0.01 par value and 100 million preferred shares at $0.01 par value, both of which represent the same authorized capital structure in effect prior to the completion of the 21CF acquisition and as of September 29, 2018. As of September 29, 2018, Legacy Disney had 40 thousand preferred series B shares authorized with $0.01 par value, which were eliminated during the first quarter of fiscal 2019.
The following tables summarize the changes in each component of accumulated other comprehensive income (loss) (AOCI) including our proportional share of equity method investee amounts:
 
 
 
 
 
Unrecognized
Pension and 
Postretirement
Medical 
Expense
 
Foreign
Currency
Translation
and Other
 
AOCI
 
Market Value Adjustments
 
AOCI, before tax
Investments
 
Cash Flow Hedges
 
Third quarter of fiscal 2019
 
 
 
 
 
 
 
 
 
Balance at March 30, 2019
$
(5
)
 
$
62

 
$
(4,163
)
 
$
(728
)
 
$
(4,834
)
Quarter Ended June 29, 2019:
 
 
 
 
 
 
 
 


Unrealized gains (losses) arising during the period
6

 
34

 
(37
)
 
48

 
51

Reclassifications of realized net (gains) losses to net income
—

 
(55
)
 
69

 
—

 
14

Balance at June 29, 2019
$
1

 
$
41

 
$
(4,131
)
 
$
(680
)
 
$
(4,769
)
 
 
 
 
 
 
 
 
 
 
Third quarter of fiscal 2018
 
 
 
 
 
 
 
 
 
Balance at March 31, 2018
$
24

 
$
(197
)
 
$
(4,690
)
 
$
(358
)
 
$
(5,221
)
Quarter Ended June 30, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
1

 
296

 
—

 
(286
)
 
11

Reclassifications of realized net (gains) losses to net income
—

 
26

 
96

 
—

 
122

Balance at June 30, 2018
$
25

 
$
125

 
$
(4,594
)
 
$
(644
)
 
$
(5,088
)
 
 
 
 
 
 
 
 
 
 
Nine months ended fiscal 2019
 
 
 
 
 
 
 
 
Balance at September 29, 2018
$
24

 
$
177

 
$
(4,323
)
 
$
(727
)
 
$
(4,849
)
Nine Months Ended June 29, 2019:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
1

 
(21
)
 
(18
)
 
47

 
9

Reclassifications of net (gains) losses to net income
—

 
(116
)
 
210

 
—

 
94

Reclassifications to retained earnings
(24
)
 
1

 
—

 
—

 
(23
)
Balance at June 29, 2019
$
1

 
$
41

 
$
(4,131
)
 
$
(680
)
 
$
(4,769
)
 
 
 
 
 
 
 
 
 
 
Nine months ended fiscal 2018
 
 
 
 
 
 
 
 
Balance at September 30, 2017
$
15

 
$
(108
)
 
$
(4,906
)
 
$
(523
)
 
$
(5,522
)
Nine Months Ended June 30, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
10

 
150

 
24

 
(121
)
 
63

Reclassifications of net (gains) losses to net income
—

 
83

 
288

 
—

 
371

Balance at June 30, 2018
$
25

 
$
125

 
$
(4,594
)
 
$
(644
)
 
$
(5,088
)
 
 
 
 
 
Unrecognized
Pension and 
Postretirement
Medical 
Expense
 
Foreign
Currency
Translation
and Other
 
AOCI
 
Market Value Adjustments
 
Tax on AOCI
Investments
 
Cash Flow Hedges
 
Third quarter of fiscal 2019
 
 
 
 
 
 
 
 
 
Balance at March 30, 2019
$
1

 
$
(14
)
 
$
984

 
$
77

 
$
1,048

Quarter Ended June 29, 2019:
 
 
 
 
 
 
 
 


Unrealized gains (losses) arising during the period
(3
)
 
(7
)
 
8

 
5

 
3

Reclassifications of realized net (gains) losses to net income
—

 
13

 
(16
)
 
—

 
(3
)
Balance at June 29, 2019
$
(2
)
 
$
(8
)
 
$
976

 
$
82

 
$
1,048

 
 
 
 
 
 
 
 
 
 
Third quarter of fiscal 2018
 
 
 
 
 
 
 
 
 
Balance at March 31, 2018
$
(10
)
 
$
41

 
$
1,778

 
$
67

 
$
1,876

Quarter Ended June 30, 2018:
 
 
 
 
 
 
 
 


Unrealized gains (losses) arising during the period
—

 
(56
)
 
(2
)
 
38

 
(20
)
Reclassifications of realized net (gains) losses to net income
—

 
(6
)
 
(24
)
 
—

 
(30
)
Balance at June 30, 2018
$
(10
)
 
$
(21
)
 
$
1,752

 
$
105

 
$
1,826

 
 
 
 
 
 
 
 
 
 
Nine months ended fiscal 2019
 
 
 
 
 
 
 
 
Balance at September 29, 2018
$
(9
)
 
$
(32
)
 
$
1,690

 
$
103

 
$
1,752

Nine Months Ended June 29, 2019:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
(2
)
 
6

 
2

 
(5
)
 
1

Reclassifications of net (gains) losses to net income
—

 
27

 
(49
)
 
—

 
(22
)
Reclassifications to retained earnings (1)
9

 
(9
)
 
(667
)
 
(16
)
 
(683
)
Balance at June 29, 2019
$
(2
)
 
$
(8
)
 
$
976

 
$
82

 
$
1,048

 
 
 
 
 
 
 
 
 
 
Nine months ended fiscal 2018
 
 
 
 
 
 
 
 
Balance at September 30, 2017
$
(7
)
 
$
46

 
$
1,839

 
$
116

 
$
1,994

Nine Months Ended June 30, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
(3
)
 
(44
)
 
(5
)
 
(11
)
 
(63
)
Reclassifications of net (gains) losses to net income
—

 
(23
)
 
(82
)
 
—

 
(105
)
Balance at June 30, 2018
$
(10
)
 
$
(21
)
 
$
1,752

 
$
105

 
$
1,826

 
 
 
 
 
Unrecognized
Pension and 
Postretirement
Medical 
Expense
 
Foreign
Currency
Translation
and Other
 
AOCI
 
Market Value Adjustments
 
AOCI, after tax
Investments
 
Cash Flow Hedges
 
Third quarter of fiscal 2019
 
 
 
 
 
 
 
 
 
Balance at March 30, 2019
$
(4
)
 
$
48

 
$
(3,179
)
 
$
(651
)
 
$
(3,786
)
Quarter Ended June 29, 2019:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
3

 
27

 
(29
)
 
53

 
54

Reclassifications of realized net (gains) losses to net income
—

 
(42
)
 
53

 
—

 
11

Balance at June 29, 2019
$
(1
)
 
$
33

 
$
(3,155
)
 
$
(598
)
 
$
(3,721
)
 
 
 
 
 
 
 
 
 
 
Third quarter of fiscal 2018
 
 
 
 
 
 
 
 
 
Balance at March 31, 2018
$
14

 
$
(156
)
 
$
(2,912
)
 
$
(291
)
 
$
(3,345
)
Quarter Ended June 30, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
1

 
240

 
(2
)
 
(248
)
 
(9
)
Reclassifications of realized net (gains) losses to net income
—

 
20

 
72

 
—

 
92

Balance at June 30, 2018
$
15

 
$
104

 
$
(2,842
)
 
$
(539
)
 
$
(3,262
)
 
 
 
 
 
 
 
 
 
 
Nine months ended fiscal 2019
 
 
 
 
 
 
 
 
Balance at September 29, 2018
$
15

 
$
145

 
$
(2,633
)
 
$
(624
)
 
$
(3,097
)
Nine Months Ended June 29, 2019:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
(1
)
 
(15
)
 
(16
)
 
42

 
10

Reclassifications of net (gains) losses to net income
—

 
(89
)
 
161

 
—

 
72

Reclassifications to retained earnings (1)
(15
)
 
(8
)
 
(667
)
 
(16
)
 
(706
)
Balance at June 29, 2019
$
(1
)
 
$
33

 
$
(3,155
)
 
$
(598
)
 
$
(3,721
)
 
 
 
 
 
 
 
 
 
 
Nine months ended fiscal 2018
 
 
 
 
 
 
 
 
Balance at September 30, 2017
$
8

 
$
(62
)
 
$
(3,067
)
 
$
(407
)
 
$
(3,528
)
Nine Months Ended June 30, 2018:
 
 
 
 
 
 
 
 
 
Unrealized gains (losses) arising during the period
7

 
106

 
19

 
(132
)
 
—

Reclassifications of net (gains) losses to net income
—

 
60

 
206

 
—

 
266

Balance at June 30, 2018
$
15

 
$
104

 
$
(2,842
)
 
$
(539
)
 
$
(3,262
)
(1) 
At the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, and reclassified $691 million from AOCI to retained earnings.
In addition, at the beginning of fiscal 2019, the Company adopted new FASB accounting guidance, Recognition and Measurement of Financial Assets and Liabilities, and reclassified $24 million ($15 million after tax) of market value adjustments on investments previously recorded in AOCI to retained earnings.
Details about AOCI components reclassified to net income are as follows:
Gains/(losses) in net income:
 
Affected line item in the
  Condensed Consolidated
  Statements of Income:
 
Quarter Ended
 
Nine Months Ended
 
 
June 29,
2019
 
June 30,
2018
 
June 29,
2019
 
June 30,
2018
Cash flow hedges
 
Primarily revenue
 
$
55

 
$
(26
)
 
$
116

 
$
(83
)
Estimated tax
 
Income taxes
 
(13
)
 
6

 
(27
)
 
23

 
 
 
 
42

 
(20
)
 
89

 
(60
)
 
 
 
 
 
 
 
 
 
 
 
Pension and postretirement
  medical expense
 
Costs and expenses
 
—

 
(96
)
 
—

 
(288
)
 
 
Interest expense, net
 
(69
)
 


 
(210
)
 
—

Estimated tax
 
Income taxes
 
16

 
24

 
49

 
82

 
 
 
 
(53
)
 
(72
)
 
(161
)
 
(206
)
 
 
 
 
 
 
 
 
 
 
 
Total reclassifications for the period
 
 
 
$
(11
)
 
$
(92
)
 
$
(72
)
 
$
(266
)